OK - Then we can forget about opening balances as they aren’t required.
Step 1 - Create a Journal using the date you started ownership of the corporation:
Debit - Shareholders Loan account 1.00
Credit - Issued Shares 1.00
Step 2 - (existing but) Create a Receive Money dated the day the 1750.00 was deposited with the Account allocation being Shareholders Loan account
Step 3 - Create a single Expense Claim dated (as per Step 1) if paid prior to the ownership of the corporation and use the Account allocations as appropriate for the particular expense item.
a) in using the Expense Claim, go to Settings - Expense Claim Payer and set yourself up. For Step 3, don’t use Member or Employee expense claim category.
Step 4 - After Step 3, the BS - Liability - Expense Claims account will have a balance. Via a Journal transfer that balance from the Expense Claims account (debit) to Shareholders Loan account (credit)
These 4 steps will now replace your existing transactions, so to tidy them up:
Remove all opening balances entered - running the report will confirm their removal, in fact, you can also go to Settings - Start Date and delete any date entered as its not required - you aren’t coming from another accounting system.
Delete those previously created Journals as shown above
The Equity - Capital Accounts should now have a zero balance. click on that tab and delete any created names. Then click on Customise and deselect the Capital Accounts tab.
Now your ATM withdrawal should use the Account allocation Shareholders Loan. All shareholder (non-employee) related funding movements should only be transacted vis the shareholders loan account.
“via a journal transfer that balance”
I dont know what your talking about. Im stuck on this.
i made a single expense claim and added all the purchases i made. Now what. How do you transfer that balance as you said.
is there another easier way of doing all this. Ive spent too much time already. Please someone help. Do i really need to pay an accountant for something like this. It seems writing thing down would be better as you can just easily say i lent this i borrowed this without all the complicated steps you have to go through. Please please please please please please.
Yes, and that is by doing things correctly in the first place, currently we are still fixing your self created mistakes.
I am “someone”, and have provided you with all solutions required, but “you” aren’t understanding them.
The actual steps aren’t complicated, but you have complicated these steps by not understanding them.
Go to the Journal Entries tab , click “new Journal Entry”, in the first line select the Account - Expense Claims and under the debit column enter 940.50. In the second line select the Account - Shareholders Loan and in the credit column enter 940.50, then click “Create”. This will complete Step 4.
Now you need to tidy up all your old data entry mistakes by the method described earlier but will now put them into steps for you to follow…
Step 5 - Capital Accounts
a) Click the Capital Accounts tab click “Edit” then click “Delete”.
b) Click “Customise” (under Settings) then deselect Capital Accounts, scroll to the bottom and click “Update”
Step 6 - Journal Entries
a) Click the Journal Entries tab and click “Edit” then “Delete” for all the Journals no longer required. When completed you should only have two Journals listed, the share issue and the expense claim transfer.
Step 7 - Start Date
a) Click the Settings tab , then click the Start Date button , now highlight the date and hit the keyboard “delete” key, then click “Update”
Once you have completed these steps, please post a screen shot of your Balance Sheet only, the P&L is not required.
after doing the Journal entries as you said and pressed create i now have that amount in suspense. when i go to it again the debit is not there only credit.
When i press delete capital account it gives mes the message " This record cannot be deleted because it is already referenced by another object.
Maybe there needs to be all this in place already and let the user delete them if they dont need it. Maybe an option when you start is this a sole trader business or company.
Looks like another long night for me. Do you think i should just give it up and wait till the end of the tax year and let an accountant fix this issue? Does anybody know an accountant that comes out fixes these problems so i can move on to running my business?
You can’t delete Capital Account as it contains an entry(s adding up to 559.60 which needs to be found but first can you confirm that the Report - Starting Balances now has no balances and can you show a screenshot of the Balance Sheet only.